EBOS has reported strong earnings growth for the six month to 31 December 2015, with total revenues hitting $3.4 billion.
This represents growth of 8.3%, or 9% growth constant FX. EBOS’ profit before tax was $101.4 million.
EBOS Group CEO, Patrick Davies, says the result reflects the benefits of continued organic growth and nearly $100 million in strategic investments across the Group during the first half.
Davies says the results provide confidence for the Group to continue investing in its key markets to drive future growth and improved returns for shareholders.
“Importantly we have been able to fund our strategic investments through either cash flows generated by the business or existing debt facilities thereby maximising our return on investment,” he says.
The Group acquired of Red Seal, a natural vitamins, supplements and products business for $80 million on 30 November 2015.
“This acquisition is strategically important for the Group as Red Seal accelerates the growth of our Endeavour Consumer Health business in Australia, New Zealand and Asia,” Davies says.
“We also completed the acquisition of Zest in the first half. Whilst a relatively small transaction for the Group, Zest is part of the company’s growing focus on areas including the delivery and administration of specialty pharmaceutical products, further strengthening our relationships with the manufacturer community.”
Revenues for the half year of $3.4 billion were up 8.3% on the same period last year (9.0% in constant currency terms) with Healthcare up by 8.2% and Animal care up by 10.1%.
Earnings before net finance costs, tax, depreciation and amortisation (EBITDA) grew by 13.3% to $113.7 million with Healthcare up by 12.7% and Animal Care up by 16.3%. The Group’s EBITDA margin increased by 14 points to 3.36% with margin growth across both divisions.
The impact of a higher NZD/AUD cross rate once again negatively impacted the Group’s reported earnings. For the first half the higher average exchange rate resulted in EBITDA being approximately $0.6 million lower.
Profit before Tax increased by 19.1% due to both the solid growth in operating earnings and lower net finance costs which were down 15.6%.
Net Profit after Tax increased to $64.2 million, representing an increase of 18.9% on the prior half-year, and earnings per share increased by 17.5%.